Maybe somehow the higher interest rates set by the CB support the higher rates of inflation?
Brazil’s Inflation Rises Even Amid Low Growth (WSJ) Brazil’s official IPCA consumer-price index rose 6.41% in 2014. The IPCA rose 5.91% in 2013. Annual inflation was driven up by an 8% increase in food prices and a 8.8% surge in housing-related prices. Inflation also accelerated in December, with the IPCA rising 0.78% versus 0.51% rise in November. The central bank raised its benchmark interest rate, called Selic, to 11.75% in December, the latest in a series of increases since April 2013, when the rate was 7.25%. The Central Bank of Brazil has a tolerance band for annual inflation of between 2.5% and 6.5%.